- Oil is lower, around $77.45, reversing gains from yesterday
- The API forecasts an inventory draw of 2.5 MMBbls and a 2 MMBbl draw from Cushing
- The Federal Reserve will meet today to discuss policy changes but is expected to keep interest rates unchanged
- The number of tankers in the Red Sea has fallen sharply (BBG)
- Following the attack on a tanker transporting Russian naphtha last week, tanker shipments through the Gulf of Aden have fallen, with about 100 ships now taking the longer route around Africa
- Some of the drop may be due to ships turning off their tracking signals in an attempt to avoid being targeted
- India leads global refining capacity increase (BBG)
- Oil refining capacity in India is set to grow by 20% over the next five years as the country expands its refining sector
- The IEA estimates that India will add 1 MMBbl/d of capacity through 2028, while China will be increasing capacity by 8% over the same period
- Vitol said, “Expansions continue to be based in the areas where demand is growing” and that “expansions in the West are non-existent”
